Navy deal sets stage for NMCI contract

Navy deal sets stage for NMCI contract

By Bill Murray

GCN Staff

The Navy last month ironed out an agreement with the Defense Information Systems Agency and Office of the Secretary of Defense that will let it proceed with its $10 billion Internet services outsourcing procurement.

In a three-day meeting, officials resolved concerns and set the stage for the Navy-Marine Corps Intranet contract award. The final hurdle is approval from Congress, which the service expects any day.


Former undersecretary Jerry Hultin says team effort was key to accord.


Take the incentive

Under the agreement with Pentagon officials, the winning NMCI vendor will be 'given an incentive to use DISA when it provides world-class service' through its Defense Information Systems Network for voice, video and data communications, said Jerry M. Hultin, the former Navy undersecretary who assisted in the negotiations.

After the meetings, Hultin began a new job as technology management dean for the Stevens Institute of Technology in Hoboken, N.J.

When DISA cannot provide the best service'such as fulfilling orders for new DISN circuits'the NMCI vendor will step in, Hultin said.

The Navy's DISN service-level agreement with DISA is 'based on private-sector standards of performance and driven by what the private sector can provide,' he said.

Circuits installed by the NMCI vendor will eventually become part of DISN, a senior DOD systems manager said. Navy officials had previously asked NMCI bidders to include non-DISN options for long-haul voice, video and data services [GCN, Dec. 13, 1999, Page 41].

Hultin called the meeting as a final item before he left the Navy. The participants included Defense Department chief information officer Arthur L. Money; Navy CIO Daniel E. Porter; Brig. Gen. Robert M. Shea, the Marine Corps' CIO; Vice Adm. Richard Mayo, the Navy's director for space, information warfare, command and control; and Joseph Cipriano, the Navy's program executive officer for information technology.

'It was totally a team effort,' Hultin said.

In addition to the DISA service-level agreement, Navy and OSD officials reached agreements on NMCI systems management issues and networking policies.

Navy and OSD officials also discussed the responsibilities of the NMCI contractor, Hultin said.

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